Econogics Frugality Tips - How to Survive (perhaps even thrive) in the Recession

Even the U.S. and Canadian federal governments have finally read the memo: we're in a recession.

Of course, those of us that actually work for a living knew this some time ago. But, seeing as we
don't fly around in corporate jets or attend cocktail gatherings on a daily basis, how were we supposed
to get some face time with our elected representatives to deliver the message? However, now that they
have likely seen their retirement savings statements going negative as well, they're at least prepared
to pretend they are listening for the next little while.

Don't waste your time giving them your opinion. It's clear from the TARP plan (save the greedy bankers
- [2009.02.14 - here's an interesting commentary:
There are fortunes to be made in screwing up a bank),
the 2009 Canadian federal budget (tax cuts now, stimulus to create jobs later, maybe) and the Obama stimulus package
(save the bankers' friends and hope they'll stop off-shoring the jobs), who has the ear of federal legislators.

It's time to learn from our federal representatives. They have looked after themselves and their
friends. We need to do the same. Save money, not bankers!

In my book, The Emperor's New Hydrogen Economy, I provided some other tips on how to save money
as a consumer, homeowner and taxpayer. If you're interested in saving money, read this book! (Yes, I'm biased,
but others have reviewed the book and they recommend it, too.) (Look, there's a picture of the book cover to the
left - click on it for more information.) (If you want this FREE!,
you need to read more of this page.)

I even wrote a few columns for weekly newspapers called the Miser's Guide to a Better Planet. Sadly, those
were never picked up, but you can read them here, FREE!

And now, here are some more frugality tips. You guessed it, FREE!

Join your local public library. Borrow books, movies on VHS or DVD, music on CDs, possibly even
video games instead of buying or renting. (Itís even OK if you borrow my book,
The Emperorís New Hydrogen Economy, instead of buying it. If your library doesn't have it (or some other
book you want to read), ask them to get it, then borrow it.)

Join your local free-cycle or equivalent network. The idea is that you offer up items you no
longer need to your neighbours for FREE! via e-mail lists,
and they do the same. (Yes, you can get FREE! stuff!)
Start at freecycle.org. Save useful items from going to landfill and save money.

Shop for second-hand items. You can find these at garage sales, consignment shops, pawn shops,
via Internet sites, in the newspaper classified ads, community bargain-finder publications and more,
even on-line retailers. For example, Amazon.ca has links to second-hand book outlets for many titles.
(Yes, itís OK if you buy my book, The Emperorís New Hydrogen Economy, second-hand.) Don't forget
your local thrift stores like Goodwill and the Salvation Army. I furnished most of an apartment from the
Salvation Army store recently, saving a lot of money.

Buy some yard-tools as community property items. Things like lawn-rollers, possibly wheel-barrows,
etc. are relatively expensive, take up storage space, and are not used frequently. Why not split the
cost with neighbours and share the savings?

Menu planning. Eating out is an expense where we can cut back and save money with a little thought and
planning. Start with the local flyers and look for this weekís bargains. Then figure out the
meals you need to prepare for the week. Then come up with recipes that make use of the current bargains,
and remember to make enough servings to have left-overs for subsequent meals and Ďbrown-bagí lunches.
Donít forget the potential for trailing meals, e.g., a roast beef dinner can spawn sandwiches, stew and soup.
Once you have the menu plan for the week, then itís time to go shopping. Donít forget about balanced meals
covering the basic food groups when doing your planning, and try for some variety to keep things interesting.

Contingency plan meals. Some days, things just donít go according to plan. To avoid the cost of a
meal out because the schedule fell victim to the unexpected, have a meal based on non-perishables
(notably canned and frozen foods) in reserve that can be prepared and served quickly.

When planning a budget, donít forget to include allocations for savings, treats, and charity.

If you actually read this far, and you thought this was helpful and would like to see more frugal tips,
let me know, and I will spend some time coming up with more
to share - yup, FREE!

2009.02.02 - Have you earned points in a frequent buyers program like Air Miles, Aeroplan, Sobeys, Hudson's Bay Company, etc.
that are just sitting because you were saving for the BIG reward? But now, it seems further away than ever as
you are trying to make ends meet? Well, take a look into the small rewards that are available in those programs.
They often include movie gift certificates, gift cards for restaurants, book stores, music/video stores,
coupons towards groceries and more. So, consider cashing in some of those points that are just collecting dust
and using those rewards to get groceries, movies, a dinner out or other small luxuries that can help make frugal
times a bit more bearable.

2009.02.03 - Get your debt under control! Make a plan to do that! If you have a computer with either Excel or
OpenOffice,
check out this Debt Reduction Calculator. It's FREE!
It comes as a zip file, including both the Excel and OpenOffice versions (for either 10 or 20 balances each).
I have used the OpenOffice version, and it is a real eye-opener to see the difference in the money in your pocket if
you target your higher interest rate debts first, instead of those with the lowest balances (apparently what most
people do).

2009.02.10 - The Pickle Jar (this was sent to me, and I thought it was worth sharing here)

The pickle jar as far back as I can remember sat on the floor beside the dresser in my parents' bedroom. When he
got ready for bed, Dad would empty his pockets and toss his coins into the jar.
As a small boy I was always fascinated at the sounds the coins made as they were dropped into the jar. They landed
with a merry jingle when the jar was almost empty. Then the tones gradually muted to a dull thud as the jar was filled.
I used to squat on the floor in front of the jar and admire the copper and silver circles that glinted like a
pirate's treasure when the sun poured through the bedroom window. When the jar was filled, Dad would sit at
the kitchen table and roll the coins before taking them to the bank.
Taking the coins to the bank was always a big production. Stacked neatly in a small cardboard box, the coins were
placed between Dad and me on the seat of his old truck.
Each and every time, as we drove to the bank, Dad would look at me hopefully. 'Those coins are going to keep
you out of the textile mill, son You're going to do better than me. This old mill town's not going to hold you back.'
Also, each and every time, as he slid the box of rolled coins across the counter at the bank toward the cashier, he
would grin proudly 'These are for my son's college fund. He'll never work at the mill all his life like me.'
We would always celebrate each deposit by stopping for an ice cream cone. I always got chocolate. Dad always got
vanilla. When the clerk at the ice cream parlor handed Dad his change, he would show me the few coins nestled in his
palm. 'When we get home, we'll start filling the jar again.'
He always let me drop the first coins into the empty jar. As they rattled around with a brief, happy jingle, we
grinned at each other. 'You'll get to college on pennies, nickels, dimes and quarters,' he said. 'But you'll get there;
I'll see to that.'
No matter how rough things got at home, Dad continued to doggedly drop his coins into the jar. Even the summer when
Dad got laid off from the mill, and Mama had to serve dried beans several times a week, not a single dime was taken from
the jar.
To the contrary, as Dad looked across the table at me, pouring catsup over my beans to make them more palatable, he
became more determined than ever to make a way out for me. 'When you finish college, Son,' he told me, his
eyes glistening, 'You'll never have to eat beans again - unless you want to.'
The years passed, and I finished college and took a job in another town. Once, while visiting my parents, I used the phone in their
bedroom, and noticed that the pickle jar was gone. It had served its purpose and had been removed.
A lump rose in my throat as I stared at the spot beside the dresser where the jar had always stood. My dad was a man
of few words, and never lectured me on the values of determination, perseverance, and faith. The pickle jar had
taught me all these virtues far more eloquently than the most flowery of words could have done. When I married, I
told my wife Susan about the significant part the lowly pickle jar had played in my life as a boy. In my mind, it
defined, more than anything else, how much my dad had loved me.
The first Christmas after our daughter Jessica was born, we spent the holiday with my parents. After dinner, Mom and
Dad sat next to each other on the sofa, taking turns cuddling their first grandchild. Jessica began to whimper softly, and Susan took
her from Dad's arms. 'She probably needs to be changed,' she said, carrying the baby into my parents' bedroom to diaper her.
When Susan came back into the living room, there was a strange mist in her eyes.
She handed Jessica back to Dad before taking my hand and leading me into the room. 'Look,' she said softly, her eyes
directing me to a spot on the floor beside the dresser. To my amazement, there, as if it had never been removed,
stood the old pickle jar, the bottom already covered with coins. I walked over to the pickle jar, dug
down into my pocket, and pulled out a fistful of coins. With a gamut of emotions choking me, I dropped the coins
into the jar. I looked up and saw that Dad, carrying Jessica, had slipped quietly into the room. Our eyes locked,
and I knew he was feeling the same emotions I felt. Neither one of us could speak.
This truly touched my heart. I know it has yours as well. Sometimes we are so busy adding up our troubles that we
forget to count our blessings.
Never underestimate the power of your actions. With one small gesture you can change a person's life, for better or for worse.

2009.02.21 (I finally received a request for another item.) Suppose you have filled the pickle jar (or have
managed to scrape up some savings), how do you get those to grow, even for short periods of time, without
risking it in volatile times in the financial markets? One new option for Canadians is the TFSA (Tax Free Savings Account).
The TFSA allows you to put your money (presumably already taxed) into a safe harbour where any gains (e.g., interest) can
accrue without being taxable. Unlike an RRSP, when you take money out of a TFSA, there are no taxes to pay. With a $5,000 annual
contribution limit, this is not for big investors, it's for folks like us where saving $5,000 in a year will take effort,
not just a signature. Right now, Canadian banks are offering deals to get you to open your TFSA with them, as it is a new
product category. Things to watch for: make sure the account is covered by the CDIC (Canadian Deposit Insurance Corporation);
that there are no withdrawal or deposit or other odd service fees; and, that you get the best rate possible.
Here's a page that discusses interest rates from on-line banks in Canada.
Here's another on high-rate savings accounts.

2009.02.22 - Cellular Telephone Costs - Love your cell phone, but hate the bill that comes with it? Here are some things you
can do about it.
Shop around for a contract that fits your habits. If you are an incessant user, get a package with lots of air-time.
Do a lot of long-distance? There are packages for that, some of which are tailored to when you do your calling, whether for
business during prime-time or social on evenings and weekends.
Is most of your long-distance to a limited number of people? If so, there are favourite-5 and favourite-10 packages available.
In any case, before doing anything dramatic, call your current carrier, and see if they have any recommendations for getting
your costs down.
If texting is your downfall, there may be a package to help out with that, or as with all billable usage, find ways to cut back.
When your contract is coming to an end, do some shopping around and see what makes the most sense for you financially.
If your phone is adequate to your needs, working well, and you are happy with it, you may be able to switch to a monthly service-only
contract. This should be cheaper, because most multi-year contracts are priced to include the cost of the cell-phone, which is usually
bundled into the deal for free or a low cost.
Finally, if you need to go to the extreme of getting out of your current contract, check out
this article.

2009.02.23 - Greening Your Mortgage - If it's time to renegotiate your mortgage (and with interest rates lower than they have been
in for decades this might be a good idea even if your mortgage isn't due for renewal), consider going with a 'green' mortgage.
Surprise! It can be less expensive than the regular run-of-the-mill mortgage, and it's going to help you save on energy bills in the
future. In the U.S., look for institutions that lend under the
Energy Star mortgage program.
In Canada, check out the major banks.
For example, TD Canada Trust offers a green mortgage with a rate a full 1% below
the standard rate, plus a rebate on eligible appliance purchases.

2009.03.11 - Cities on the Cheap - frugal chic is in! Even the blogosphere is taking note! If you have stashed a few
bucks and need to get away from the local gloom, Cities on the Cheap has
just launched their Web site with ways to stretch your dollars while traveling to cities in Canada and the U.S.

2009.12.12 (After several thousand page views in the past nine months, somebody finally asked for more.
I was beginning to think the recession was over and I had missed it, even though the ranks of unemployed
in Canada and the U.S. are continuing to grow.)

Saving on Christmas Expenses.

If you have time, but money is scarce, give the gift of time this year.
IOUs for specific tasks are often welcome gifts, such as a season of clearing the driveway, mowing the lawn,
washing the car, helping with spring cleaning, washing windows, etc.

Instead of buying prepared foods for
entertaining, look up recipes, buy the ingredients,
and make them yourself.

Home-baked Christmas treats make good gifts (though fruit cakes are expensive to
make yourself and not always the most welcome of gifts).

If you know the recipient is on a sugar-restricted diet, prepare the sweets with Splenda or stevia,
and mark them as such. Sure to be appreciated.

Save on wrapping paper by using newspaper,
especially the coloured cartoon section. (I have seen unwrapping stop while the recipient read the
wrapping paper!)

Instead of fancy gift tags, cut a piece from the same wrapping paper, fold like a card,
write on the blank side, and tape to the package.

2010.01.21

It appears the recession is not really lifting after all. More Canadians and Americans
are unemployed, and the markets are finally getting the message and shedding their
exuberance, too.

Now that it's winter, many of us are dealing with heating bills, along with
all the other expenses of daily life. Here's a new
site with daily tips on how to reduce your energy expenses, while also
reducing your greenhouse gas emissions (climate change). For the past few days
the tips have been about reducing household heating costs.

2010.01.22

Even though many of us are working to cut our expenses, there are simply some things
we cannot put off buying. Rather than climbing into our car, burning our gasoline,
more and more people are shopping on-line via their computers. However, given you
are still in a frugal mood, and trying to stretch those dollars, don't be afraid
to shop around, and look for on-line coupons that may relate to a purchase you need to make.

2010.03.08

While searching for something else, I came across this
frugality blog. I hope you enjoy
it as much as I did. (How could I not love them when I later found
this Water Saver
review on the site?)

2011.03.14

Just when I thought there was a chance we might be seeing some real economic recovery,
in spite of our governments, Japan suffers the trifecta: powerful earthquake, a massive tsunami,
and a nuclear incident. Japan was already an economic basket case, and the world's 3rd largest
economy. The economic ripple effects will shake the world economy. Number 1 automaker. Major
electronics companies. In short, if you are not affected directly by these tragic events,
brace yourself for economic tremors that will affect you. A renewed/continuing recession
is probable.

2011.03.17

For most of us, income tax time is coming. You may be looking forward to a refund cheque,
or dreading having to come up with funds to pay what you owe. Either way, having a financial
plan and knowing your resources can come in handy. Taxes are a big part of what most of us
pay as part of our daily life. Understanding them and acting to reduce them can pay big dividends.

2011.03.21

Managing your finances successfully requires understanding all the resources at your
disposal, especially in the trying times of the recession that never seems to end. One such
resource for those with a steady income is the pay day loan.
While it probably should not be a tool you use regularly, it may have a valid place in your
financial tool box.

2011.04.30

Getting an income tax refund? How are you going to spend it, or is it already gone?
If you have outstanding credit card debt, paying that down is probably a good way to use
that money. Suppose you are getting a $1,000 refund, and have that much or more as a credit
card balance at 1.5% interest per month. Pay down that balance with the $1,000, and that
becomes $15 a month in your pocket in saved interest costs - forever! That's not just $180
a year, but due to the joys of monthly compounding by the credit card company, it's actually
$195.62. And if your card charges more (some have a nominal annual rate of 24 to 28%), that
amount will be even more.